Competition concerns over airport Woolies

ACT Chief Minister Katy Gallagher has added her voice to concerns about new threats to competition in Canberra's supermarket sector.

Woolworths is setting up a supermarket, variety and electronics store at Majura Park beside the Canberra Airport.

The supermarket giant says it will be in direct competition with United States retail giant Costco.

"Woolworths are not afraid of competition and we're really backing ourselves to deliver the quality, service, range and value that customers want," said spokesman Simon Burger.

Mr Burger says 300 jobs will be created by the time the store opens next Easter.

"Woolworths does our homework very carefully and we believe that this can become a very attractive shopping hub for the surrounding districts, Canberra and Queanbeyan," he said.

Last year the Government introduced policies to try to reduce the market domination of Woolworths and Coles and increase supermarket competition.

But Ms Gallagher says the Government has no say over development within the airport precinct.

"In terms of what the airport signs up to potentially will provide consumers with benefits," she said.

"But I share some of the concerns of small business that this will place additional pressure on them and we'll just have to monitor that and see if there's any other ways the Government can support them and influence other outcomes across the ACT where we do have control over decisions."

He says Woolworths is filling a void left by the departure of the Supabarn supermarket.

"We're in no different shape but what we are going to have is fierce competition between Costco and Woolworths and what that will do is mean that the consumers, the customers here in Canberra and Queanbeyan, are going to get the best prices," he said.